Lloyd, whose release saved the Steelers $2.8 million under the salary cap, took a pay cut to sign with Carolina. Neither the Panthers nor Richard Bell, Lloyd's agent, would reveal the terms, but sources said the contract includes a base salary of $500,000 and incentives that could push the total to about $1.5 million.

Lloyd, 33, will be reunited with Carolina Coach Dom Capers, who was the Steelers' defensive coordinator from 1992-94.

"I was with him for three years, so you know what a guy's like -- his practice habits, his competitiveness, his toughness," Capers said. "If there's a player like that who's released, we're going to take a good look at him."

Cornerback Donnell Woolford, who was cut by the Steelers in June, also signed with the Panthers. He agreed to a one-year, $325,000 contract. He was to make $1.15 million with the Steelers this season.

Lloyd, coming off two serious injuries in as many seasons, will add depth to a group of outside linebackers that includes veterans Lamar Lathon and Kevin Greene.

Lloyd missed all but one game in 1996 after tearing up a knee in the season opener, and he was starting to return to form last season when he suffered an ankle injury in Philadelphia in November. After the ankle injury was treated, a staph infection was diagnosed and slowed his recovery.

Lloyd was released July 14 after limping badly during the Steelers' minicamp.